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Concepts in Computerized Accounting Systems

Types of Data

Every accounting systems stores data in two ways: Master Data and Non-Master Data (or Transaction Data) as shown

  • Master Data: Relatively permanent data not expected to change frequently.
  • Non-Master Data: Non-permanent data and expected to change frequently.

 

Master Data: Master data is relatively permanent data that is not expected to change again and again. It may change, but not again and again.

  • Accounting Master Data ‚Äď This includes names of ledgers, groups, accounting voucher types, etc. Similarly, all other ledgers like, sales, purchase, expenses and income ledgers are

 

 

created once and not expected to change again and again. Opening balance carried forward from previous year to next year is also a part of master data and not expected to change.

  • Inventory Master Data ‚Äď This includes stock items, stock groups, godowns, inventory voucher types, etc.
  • Payroll Master Data ‚Äď Payroll is another area connecting with Accounting Systems. Master data in case of payroll can be names of employees, group of employees, salary structure, pay heads, etc.
  • Statutory Master Data ‚Äď This is a master data relating to statute/law. It may be different for different type of taxes. E.g. Goods and Service Tax (GST), Nature of payments for Tax Deducted at Source (TDS), etc.

 

Non-Master Data: It is a data which is expected to change frequently, again and again and not a permanent data. Amounts recorded in each transaction shall be different every time and expected to change again and again.

 

Why Master &Non-Master data:

  • Master data is generally not typed by the user, it is selected from the available list.
  • Master data entry is usually done less frequently say once a year or when there is a need to update.
  • Non-master data is typed by the user and not selected from available list as it is a non- permanent and it keeps on changing again and again.
  • While inputting the information, user is forced to select master data from the available list just to avoid confusion while preparing reports. For example - same ledger name may be written differently.

ii. Voucher Types

In accounting language, a Voucher is a documentary evidence of a transaction. There may be different documentary evidences for different types of transactions.

 

 

S.NO.

Voucher Type Name

Module

Use

1

Contra

Accounting

For recording of four types of transactions as under.

  • Cash deposit in bank
  • Cash withdrawal from bank
  • Cash transfer from one location to another.
  • Fund transfer from our one bank account to our own another bank

 

 

 

 

 

account.

2

Payment

Accounting

For recording of all types of payments.

Whenever the money is going out of business by any mode (cash/bank)

3

Receipt

Accounting

For recording of all types of receipts. Whenever money is being received into business from outside by any mode

(cash/bank).

4

Journal

Accounting

For        recording           of        all        non-cash/bank transactions.

E.g. Depreciation, (provision, Write-off, Write- back, discount given/received, purchase/Sale

of fixed assets on credit, etc.

5

Sales

Accounting

For recording all types of trading sales by any

mode (cash/bank/credit).

6

Purchase

Accounting

For recording all types of trading purchase by

any mode (cash/bank/credit).

7

Credit Note

Accounting

For making changes/corrections in already

recorded sales/purchase transactions.

8

Debit Note

Accounting

For making changes/corrections                    in

already recorded sales/purchase transactions.

9

Purchase Order

Inventory

For recording of a purchase order raised on a

vendor.

10

Sales Order

Inventory

For recording of a sales order received from a

customer.

11

Stock Journal

Inventory

For recording of physical movement of stock

from one location to another.

12

Physical Stock

Inventory

For making corrections in stock after physical

counting.

13

Delivery Note

Inventory

For recording of physical delivery of goods

sold to a customer.

14

Receipt Note

Inventory

For recording of physical receipt of goods

purchased from a vendor.

15

Memorandum

Accounting

For recording  of transaction which  will  be  in

the system but will not affect the trial balance.

16

Attendance

Payroll

For recording of attendance of employees.

 

 

 

17

Payroll

Payroll

For salary calculations.

 

III.Voucher Number

A Voucher Number or a Document Number is a unique identity of any voucher/ document. Let us understand some peculiarities about voucher numbering.

  • Voucher number must be unique.
  • Every voucher type shall have a separate numbering series
  • A voucher number may have prefix or suffix or both,
  • All vouchers must be numbered serially

IV.Grouping of Ledgers

At the time of creation of any new ledger, it must be placed under a particular group. There are four basic groups in Accounting, i.e. Income, Expense, Asset, Liability. There may be any number of sub groups under these four basic groups. Grouping is important as this is way to tell software what is the nature of the ledger and where it is to be shown at the time of reporting.

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